PURDUE UNIVERSITY
OFFICE OF THE BUSINESS MANAGER AND ASSISTANT TREASURER
WEST LAFAYETTE, INDIANA 47907

To: Deans, Directors, and Heads of Schools, Divisions, Departments and Offices

Re: BUSINESS OFFICE MEMORANDUM NO. 37

Old Age and Survivors Insurance of the Social Security Program

Under the 1954 extension of the Social Security law, it will be possible for members of the University faculty and administrative staff to be included under Old Age and Survivors Insurance of the Social Security Program.

Only those who are presently on the TIAA program will be eligible to vote in a referendum by secret written ballot, which is scheduled to be held on Friday, 5 August 1955.

We are, therefore, informing all members of the staff who will be eligible for participation in the Teachers' Insurance and Annuity Association retirement system, to the effect that a referendum will be held which, if a majority of those now in TIAA approve, will extend Social Security coverage to all staff members.

It is proposed that if approval is forthcoming at the referendum on 5 August, Social Security will be made effective as of 1 January 1955 with the first deduction from salary checks to be made in August 1955. The arrearage due for retroactive coverage to 1 January 1955 must be paid. However, it will be possible for you to have extra deductions made from your salary checks to cover the arrearage, if you do not wish to pay in a lump sum.

The Social Security contribution rate is 2% of each member's salary, matched by an equal amount from University funds, and will be applicable to a maximum of $4200 of the calendar year's salary. The contribution rate increases periodically until it reaches 4% in 1975.

Inasmuch as you are not presently participating in the TIAA plan, you will not be eligible to vote in the referendum, but we felt you should be informed of the possibility of Social Security coverage in case the vote of eligible members is favorable.